1517:
1507:
1487:
1467:
1457:
1497:
1477:
234:, along with a doubling of the annual allowance to £200,000 per individual per tax year, while capital gains tax deferral was withdrawn. These changes helped VCT fundraising increase sharply to £505 million in 2004/05 and £779 million in 2005/06, the latter setting a record that would last 15 years.
140:
Within three years of the share issue at least 80% of the VCT's assets must be invested in "qualifying" holdings. These are defined as holdings of shares or securities, including loans of at least five years duration, in unquoted companies and those whose shares are traded on the alternative
105:
income tax relief at the rate of 30% on the amount subscribed for the shares (on or after 6 April 2006). This relief is available on investments up to £200,000 in a tax year (£100,000 before 6 April 2006), if they are held for at least 5 years (3 years for shares issued before 6 April
219:
For the first nine years of their existence, Venture
Capital Trusts raised an average of £181 million per tax year in aggregate. During this time, investors could claim 20% income tax relief on VCT subscriptions upfront, and also defer capital gains, thus avoiding
152:
million, and the company must have no more than 250 employees. If an investment is held in a company that becomes quoted on the London Stock
Exchange then it can continue to be treated as a qualifying VCT investment for up to five years.
141:
investment market (AIM). These companies must have a permanent establishment in the UK and carry out a "qualifying trade". The balance of up to 20% can be invested into areas such as government securities, gilts or blue-chip shares.
289:
billion was raised, 5% lower than the year before. A new record was set for the largest individual VCT offer, with
Octopus Titan VCT raising £237 million. AIM VCTs raised only £85 million, half the total of the previous year.
237:
After the level of income tax relief was reduced to 30% in April 2006, at which point the required minimum holding period was also increased to 5 years, the amounts raised by VCTs in the tax year did not exceed
74:
companies, and some VCTs specialise in this area. VCTs tend to have a minority stake in the businesses they invest in, as opposed to private equity investing, where a majority stakeholder position is held.
282:
billion was raised, of which £170 million by AIM VCTs, also the highest on record. The year was notable for fast selling offers including Mobeus VCTs, which raised £35 million within a day of opening.
148:
million in a qualifying company. Each individual investment cannot make up more than 15% of VCT assets. The gross assets of the company into which the VCT invests must not exceed £15
117:
Compared with the issue price of new shares in VCTs, the price of VCT shares on the stock market (second-hand shares) tends to be lower, reflecting the absence of income tax relief.
729:
1387:
965:
937:
285:
In 2022/23 the backdrop in the UK economy was one of economic uncertainty, with high inflation, political instability and the ongoing
Russian invasion of Ukraine. £1.08
125:
VCTs raise funds through issues of new shares. The managers of the VCT then have three years in which to invest this money. During this time they may hold the funds as
113:(that is, tax on the gains on the disposal of other assets within 12 months before or after the investment could be postponed until the VCT shares were disposed of).
613:
787:
758:
683:
1460:
271:
million was raised, 11% higher than the previous year, although the overall capacity of VCT share offers was 7.5% lower, reflecting uncertainty over the
246:
297:
million, the third highest total. Around 66% of the difference is accounted for by the £131 million less raised by a single trust, Octopus Titan VCT.
83:
Tax reliefs are different for investors in new shares issued by VCTs and investors who purchase second-hand shares, for example on the stock market.
958:
272:
925:
919:
1034:
1520:
951:
867:
1432:
1556:
737:
638:
210:
VCT is set to be wound up after the minimum five-year holding period in order for the assets to be distributed among shareholders.
1254:
1249:
931:
1157:
1042:
1019:
892:
841:
816:
795:
766:
1490:
1232:
550:
40:
1500:
1470:
704:
189:
134:
71:
1480:
1237:
545:
540:
530:
70:. They invest in other companies which are usually not themselves listed, although VCTs can also invest in
48:
32:
1067:
1062:
1057:
1052:
1047:
228:
1114:
1541:
1324:
1274:
1212:
1172:
1119:
126:
94:
1551:
1510:
1427:
1422:
1546:
1407:
1402:
1357:
52:
1417:
1382:
1279:
1109:
63:
35:
designed to provide venture capital for small expanding companies, and income (in the form of
1334:
67:
1362:
1147:
1024:
257:
8:
1437:
1299:
1289:
1207:
1202:
1198:
1152:
868:"Venture Capital Trust fundraising at third highest ever amid 18 per cent drop – City AM"
1412:
1372:
1309:
1304:
1142:
569:
245:
In 2018/19, when £731 million was raised, the trust that raised the largest total was
1377:
1104:
1099:
1094:
1009:
943:
261:
221:
184:
VCT focuses on a particular industry or sector such as healthcare or technology. An
1217:
1086:
997:
535:
44:
300:
The amounts raised since income tax relief was set at 30 per cent are as follows:
1397:
1319:
1167:
1129:
1004:
978:
29:
1222:
1137:
1014:
974:
656:
589:
25:
180:
VCT invests primarily in unquoted companies from a diversity of industries; a
1535:
1329:
1314:
1294:
1182:
1442:
1367:
1339:
1284:
1177:
231:
110:
642:
227:
In 2004 the amount of income tax relief was temporarily doubled to 40% by
1227:
56:
614:"Encouraging more high-growth investment through Venture Capital Trusts"
1392:
1162:
130:
39:
distributions) and/or capital gains for investors. VCTs are a form of
684:"Historic VCT fundraising figures excluding enhanced share buy-backs"
161:
VCTs can usually be classified according to the following criteria:
36:
188:
VCT may also be generalist in nature but invests predominantly in
90:
exemption from income tax on dividends on ordinary shares in VCTs
249:, which reached £227.7 million, a record for a VCT share offer.
101:
For new shares, the same reliefs are available, and in addition
992:
202:: VCTs that are set up to invest indefinitely may be called
932:"How to save 30% on your tax bill without spending a penny"
730:"VCT fundraising in 2018/19 sets new records - Wealth Club"
686:. The AIC (Association of Investment Companies). 2022-04-07
842:"VCT fundraising 2022-23 – who raised what? - Wealth Club"
252:
In 2019/20, the amount invested in VCTs dropped to £619
973:
264:
caused widespread interruption to business in the UK.
109:
for shares issued before 6 April 2004, capital gains
59:
1995 to encourage investment into new UK businesses.
51:in the United States. They were introduced by the
926:"Tax breaks make venture capital trusts tempting"
214:
1533:
920:"AIC places Octopus VCT atop fundraising chart"
657:"Venture Capital Trusts (VCTs) Essential Facts"
959:
1461:Private equity and venture capital investors
590:"Venture Capital Trusts (VCTs) Tax Savings"
1496:
1476:
1433:Taxation of private equity and hedge funds
1250:Private investment in public equity (PIPE)
966:
952:
273:economic impact of the COVID-19 pandemic
137:to attempt to maximize investor return.
129:, or buy gilts, bonds and in some cases
86:For second-hand shares, the reliefs are
817:"VCT fundraising 2021-22 - Wealth Club"
788:"VCT fundraising 2020-21 - Wealth Club"
759:"VCT fundraising 2019/20 - Wealth Club"
1534:
570:"Finance Act 1995 - Table of contents"
947:
893:"How much did VCTs raise in 2023-24?"
678:
676:
928:The Independent on Sunday 2010-09-26
293:In 2023/24 funds raised fell to £882
62:The structure of a VCT is that of a
13:
673:
14:
1568:
913:
1557:Investment in the United Kingdom
1516:
1515:
1506:
1505:
1495:
1486:
1485:
1475:
1466:
1465:
1456:
1455:
938:"Save tax and back small firms"
885:
859:
834:
809:
780:
256:million during a year in which
1233:Publicly traded private equity
934:The Daily Telegraph 2019-02-28
751:
722:
705:"Wind of change for investors"
697:
649:
639:"About Venture Capital Trusts"
631:
606:
582:
562:
551:Publicly traded private equity
278:In 2021/22 a new high of £1.13
258:the UK left the European Union
215:Amount of money raised by VCTs
78:
49:business development companies
41:publicly traded private equity
1:
1501:List of venture capital firms
556:
97:on disposal of shares in VCTs
1481:List of private equity firms
1238:Business Development Company
794:. 2021-04-08. Archived from
765:. 2020-04-09. Archived from
736:. 2019-04-09. Archived from
546:Enterprise investment scheme
541:Collective investment scheme
531:Business development company
33:collective investment scheme
7:
524:
120:
10:
1573:
1325:High-net-worth individuals
1115:Leveraged recapitalization
922:Investment Week 2010-05-03
1451:
1348:
1267:
1213:Limited liability company
1191:
1173:Venture capital financing
1128:
1120:Dividend recapitalization
1085:
1076:
1033:
985:
156:
144:VCTs may invest up to £5
127:cash or cash equivalents
1280:Institutional investors
1418:Liquidation preference
1383:Distribution waterfall
1335:Sovereign wealth funds
940:, MoneyWeek 2022-03-26
242:million for a decade.
64:public limited company
1491:Venture capital firms
1243:Venture capital trust
68:London Stock Exchange
18:venture capital trust
1471:Private equity firms
1199:Private equity firms
1148:Post-money valuation
1025:Equity co-investment
897:www.wealthclub.co.uk
846:www.wealthclub.co.uk
821:www.wealthclub.co.uk
792:www.wealthclub.co.uk
763:www.wealthclub.co.uk
734:www.wealthclub.co.uk
661:www.wealthclub.co.uk
594:www.wealthclub.co.uk
1521:Portfolio companies
1438:Undercapitalization
1290:Insurance companies
1208:Limited partnership
1153:Pre-money valuation
709:www.theguardian.com
1373:Capital commitment
1143:Business incubator
1110:Buy–sell agreement
192:-listed companies.
55:government in the
1529:
1528:
1378:Capital structure
1263:
1262:
1105:Divisional buyout
1100:Management buyout
1095:Financial sponsor
522:
521:
262:COVID-19 pandemic
247:Octopus Titan VCT
222:capital gains tax
95:capital gains tax
45:investment trusts
1564:
1542:Investment funds
1519:
1518:
1509:
1508:
1499:
1498:
1489:
1488:
1479:
1478:
1469:
1468:
1459:
1458:
1320:Commercial banks
1310:Investment banks
1218:Carried interest
1083:
1082:
986:Investment types
968:
961:
954:
945:
944:
908:
907:
905:
904:
889:
883:
882:
880:
879:
863:
857:
856:
854:
853:
838:
832:
831:
829:
828:
813:
807:
806:
804:
803:
784:
778:
777:
775:
774:
755:
749:
748:
746:
745:
726:
720:
719:
717:
716:
701:
695:
694:
692:
691:
680:
671:
670:
668:
667:
653:
647:
646:
641:. Archived from
635:
629:
628:
626:
625:
610:
604:
603:
601:
600:
586:
580:
579:
577:
576:
566:
536:Investment trust
314:
303:
302:
296:
288:
281:
270:
255:
241:
151:
147:
43:, comparable to
1572:
1571:
1567:
1566:
1565:
1563:
1562:
1561:
1552:Venture capital
1532:
1531:
1530:
1525:
1511:Angel investors
1447:
1398:High-yield debt
1351:financial terms
1350:
1344:
1259:
1187:
1168:Startup company
1124:
1078:
1072:
1029:
981:
979:venture capital
972:
916:
911:
902:
900:
891:
890:
886:
877:
875:
866:
864:
860:
851:
849:
840:
839:
835:
826:
824:
815:
814:
810:
801:
799:
786:
785:
781:
772:
770:
757:
756:
752:
743:
741:
728:
727:
723:
714:
712:
703:
702:
698:
689:
687:
682:
681:
674:
665:
663:
655:
654:
650:
637:
636:
632:
623:
621:
612:
611:
607:
598:
596:
588:
587:
583:
574:
572:
568:
567:
563:
559:
527:
319:
312:
310:
294:
286:
279:
268:
267:In 2020/21 £685
253:
239:
217:
159:
149:
145:
123:
93:exemption from
81:
12:
11:
5:
1570:
1560:
1559:
1554:
1549:
1547:Private equity
1544:
1527:
1526:
1524:
1523:
1513:
1503:
1493:
1483:
1473:
1463:
1452:
1449:
1448:
1446:
1445:
1440:
1435:
1430:
1425:
1420:
1415:
1410:
1405:
1400:
1395:
1390:
1385:
1380:
1375:
1370:
1365:
1360:
1354:
1352:
1346:
1345:
1343:
1342:
1337:
1332:
1330:Family offices
1327:
1322:
1317:
1315:Merchant banks
1312:
1307:
1302:
1297:
1292:
1287:
1282:
1277:
1271:
1269:
1265:
1264:
1261:
1260:
1258:
1257:
1252:
1247:
1246:
1245:
1240:
1230:
1225:
1223:Management fee
1220:
1215:
1210:
1205:
1195:
1193:
1189:
1188:
1186:
1185:
1180:
1175:
1170:
1165:
1160:
1155:
1150:
1145:
1140:
1138:Angel investor
1134:
1132:
1126:
1125:
1123:
1122:
1117:
1112:
1107:
1102:
1097:
1091:
1089:
1080:
1074:
1073:
1071:
1070:
1065:
1060:
1055:
1050:
1045:
1039:
1037:
1031:
1030:
1028:
1027:
1022:
1017:
1012:
1007:
1002:
1001:
1000:
989:
987:
983:
982:
975:Private equity
971:
970:
963:
956:
948:
942:
941:
935:
929:
923:
915:
914:External links
912:
910:
909:
884:
858:
833:
808:
779:
750:
721:
696:
672:
648:
645:on 2014-02-06.
630:
605:
581:
560:
558:
555:
554:
553:
548:
543:
538:
533:
526:
523:
520:
519:
516:
513:
509:
508:
505:
502:
498:
497:
494:
491:
487:
486:
483:
480:
476:
475:
472:
469:
465:
464:
461:
458:
454:
453:
450:
447:
443:
442:
439:
436:
432:
431:
428:
425:
421:
420:
417:
414:
410:
409:
406:
403:
399:
398:
395:
392:
388:
387:
384:
381:
377:
376:
373:
370:
366:
365:
362:
359:
355:
354:
351:
348:
344:
343:
340:
337:
333:
332:
329:
326:
322:
321:
320:previous year
316:
309:Amount raised
307:
216:
213:
212:
211:
193:
158:
155:
122:
119:
115:
114:
107:
99:
98:
91:
80:
77:
9:
6:
4:
3:
2:
1569:
1558:
1555:
1553:
1550:
1548:
1545:
1543:
1540:
1539:
1537:
1522:
1514:
1512:
1504:
1502:
1494:
1492:
1484:
1482:
1474:
1472:
1464:
1462:
1454:
1453:
1450:
1444:
1441:
1439:
1436:
1434:
1431:
1429:
1426:
1424:
1421:
1419:
1416:
1414:
1411:
1409:
1406:
1404:
1401:
1399:
1396:
1394:
1391:
1389:
1386:
1384:
1381:
1379:
1376:
1374:
1371:
1369:
1366:
1364:
1361:
1359:
1356:
1355:
1353:
1347:
1341:
1338:
1336:
1333:
1331:
1328:
1326:
1323:
1321:
1318:
1316:
1313:
1311:
1308:
1306:
1303:
1301:
1298:
1296:
1295:Fund of funds
1293:
1291:
1288:
1286:
1285:Pension funds
1283:
1281:
1278:
1276:
1273:
1272:
1270:
1266:
1256:
1253:
1251:
1248:
1244:
1241:
1239:
1236:
1235:
1234:
1231:
1229:
1226:
1224:
1221:
1219:
1216:
1214:
1211:
1209:
1206:
1204:
1200:
1197:
1196:
1194:
1190:
1184:
1183:Venture round
1181:
1179:
1176:
1174:
1171:
1169:
1166:
1164:
1161:
1159:
1156:
1154:
1151:
1149:
1146:
1144:
1141:
1139:
1136:
1135:
1133:
1131:
1127:
1121:
1118:
1116:
1113:
1111:
1108:
1106:
1103:
1101:
1098:
1096:
1093:
1092:
1090:
1088:
1084:
1081:
1075:
1069:
1066:
1064:
1061:
1059:
1056:
1054:
1051:
1049:
1046:
1044:
1043:Early history
1041:
1040:
1038:
1036:
1032:
1026:
1023:
1021:
1018:
1016:
1013:
1011:
1008:
1006:
1003:
999:
996:
995:
994:
991:
990:
988:
984:
980:
976:
969:
964:
962:
957:
955:
950:
949:
946:
939:
936:
933:
930:
927:
924:
921:
918:
917:
898:
894:
888:
873:
869:
862:
847:
843:
837:
822:
818:
812:
798:on 2022-06-28
797:
793:
789:
783:
769:on 2022-05-21
768:
764:
760:
754:
740:on 2022-05-28
739:
735:
731:
725:
710:
706:
700:
685:
679:
677:
662:
658:
652:
644:
640:
634:
619:
615:
609:
595:
591:
585:
571:
565:
561:
552:
549:
547:
544:
542:
539:
537:
534:
532:
529:
528:
517:
514:
511:
510:
506:
503:
500:
499:
495:
492:
489:
488:
484:
481:
478:
477:
473:
470:
467:
466:
462:
459:
456:
455:
451:
448:
445:
444:
440:
437:
434:
433:
429:
426:
423:
422:
418:
415:
412:
411:
407:
404:
401:
400:
396:
393:
390:
389:
385:
382:
379:
378:
374:
371:
368:
367:
363:
360:
357:
356:
352:
349:
346:
345:
341:
338:
335:
334:
330:
327:
324:
323:
317:
308:
305:
304:
301:
298:
291:
283:
276:
274:
265:
263:
259:
250:
248:
243:
235:
233:
230:
225:
223:
209:
205:
201:
197:
194:
191:
187:
183:
179:
175:
171:
167:
164:
163:
162:
154:
142:
138:
136:
132:
128:
118:
112:
108:
104:
103:
102:
96:
92:
89:
88:
87:
84:
76:
73:
69:
65:
60:
58:
54:
50:
47:in the UK or
46:
42:
38:
34:
31:
27:
26:tax efficient
23:
19:
1443:Vintage year
1368:Capital call
1340:Crowdfunding
1275:Corporations
1242:
1178:Venture debt
901:. Retrieved
899:. 2024-04-10
896:
887:
876:. Retrieved
874:. 2024-04-09
871:
861:
850:. Retrieved
848:. 2023-04-11
845:
836:
825:. Retrieved
823:. 2022-04-08
820:
811:
800:. Retrieved
796:the original
791:
782:
771:. Retrieved
767:the original
762:
753:
742:. Retrieved
738:the original
733:
724:
713:. Retrieved
711:. 2005-03-05
708:
699:
688:. Retrieved
664:. Retrieved
660:
651:
643:the original
633:
622:. Retrieved
620:. 2017-11-22
617:
608:
597:. Retrieved
593:
584:
573:. Retrieved
564:
318:Change from
299:
292:
284:
277:
266:
251:
244:
236:
232:Gordon Brown
226:
218:
208:limited-life
207:
203:
200:Limited Life
199:
195:
185:
181:
177:
173:
169:
165:
160:
143:
139:
124:
116:
111:tax deferral
100:
85:
82:
61:
53:Conservative
21:
17:
15:
1305:Foundations
1228:Pledge fund
1020:Secondaries
131:unit trusts
79:Tax reliefs
57:Finance Act
1536:Categories
1393:Envy ratio
1300:Endowments
1163:Seed money
1077:Terms and
903:2023-04-11
878:2024-04-11
872:cityam.com
852:2023-04-11
827:2022-04-08
802:2021-04-20
773:2020-08-26
744:2019-04-29
715:2022-04-08
690:2022-04-08
666:2016-12-05
624:2019-04-29
599:2016-12-05
575:2016-12-05
557:References
229:chancellor
182:specialist
178:generalist
170:Specialist
166:Generalist
30:closed-end
1363:Cap table
1268:Investors
1192:Structure
1010:Mezzanine
998:Leveraged
204:evergreen
196:Evergreen
1413:Leverage
1349:Related
1079:concepts
525:See also
507:(18.0%)
496:(29.7%)
463:(24.6%)
375:(15.3%)
331:(18.2)%
315:million)
306:Tax year
260:and the
121:Criteria
37:dividend
1423:M&A
1130:Venture
1035:History
1005:Venture
512:2006/07
501:2007/08
490:2008/09
485:119.5%
479:2009/10
468:2010/11
457:2011/12
446:2012/13
435:2013/14
424:2014/15
413:2015/16
402:2016/17
391:2017/18
380:2018/19
369:2019/20
358:2020/21
347:2021/22
342:(4.9)%
336:2022/23
325:2023/24
66:on the
1388:EBITDA
1087:Buyout
1015:Growth
993:Buyout
618:gov.uk
441:56.1%
408:18.3%
397:34.3%
364:10.7%
353:65.4%
313:
295:
287:
280:
269:
254:
240:
150:
146:
106:2006).
1203:funds
1068:2020s
1063:2010s
1058:2000s
1053:1990s
1048:1980s
474:4.7%
452:0.8%
430:2.1%
419:6.8%
386:0.4%
350:1,133
339:1,078
157:Types
135:OEICs
24:is a
1255:SPAC
1201:and
1158:SAFE
977:and
865:<
238:£500
206:. A
176:: A
1428:PME
1408:IRR
1403:IPO
1358:AUM
515:267
504:220
493:154
482:338
471:354
460:267
449:269
438:420
427:429
416:457
405:542
394:728
383:731
372:619
361:685
328:882
198:or
190:AIM
186:AIM
174:AIM
172:or
72:AIM
28:UK
22:VCT
20:or
1538::
895:.
870:.
844:.
819:.
790:.
761:.
732:.
707:.
675:^
659:.
616:.
592:.
518:-
311:(£
275:.
224:.
168:,
133:/
16:A
967:e
960:t
953:v
906:.
881:.
855:.
830:.
805:.
776:.
747:.
718:.
693:.
669:.
627:.
602:.
578:.
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